this is that - this happens, page-15

I will post separately a summary of my 30 minute discussion with Andrew Meloncelli, but here interspersed in thelynxx's post are comments by Andrew about what he wrote:

"Creat Group was supposed to lend GXY $130 Million and also be issued shares at 88c in GXY for a 19.99% shareholding.
Creat Group BAILED."

"Incorrect" according to the company secretary. The 4.5% refers to only the first instalment. They have completed only the first tranche. The company announced on the 27th of November that they would transfer the debt facility to the RZB bank in China...a reputable bank, and will be signing the facility agreement at "any time now."

thelynxx:
Currently,GXY is in a precarious position without the funding of that $130 Million Loan (still trying to be negotiated with RZB and China Development Bank,but no result yet).

Andrew:
"The money has all been approved, and the company has advised the market of it." It's a 300 page document, so we're dealing with legal definitions and so on, thrashing out the detail. The term sheet is not negotiable and the draw down periods are set as core principles.
We have 4 jurisdicitons: HK, china, Aus, Austria. We can't do it in a week."

thelynxx:
Creat Group elected a very small subsidiary Company called Creat Resources Holdings Ltd (formerley Zeehan Zinc - registered in Tasmania ) to take up that 19.99% holding.
To date CRHL has only been able to raise enough money for approx 4.5% shareholding in GXY.

Andrew:
"NOT TRUE. That's the most they could take up without running into AIM rules." He went on to say later in the conversation that neither can Creat take over GXY, and more importantly (if I understood him correctly) that a simple mistake was made in omitting the words "or nominees" in the announcement, and that has held things up a bit.

thelynxx:
CRHL(listed on AIM in London),whose last share price is about 4 pence is attempting to raise the balance of that $17.5 Million to pay to GXY for their total shareholding of 19.99%,by issuing 283,333,333 shares at 6 pence a share.

Andrew:
"If Creat RHL don't raise the money, Creat will underwrite it.
We have the money no matter what."

thelynxx:
Creat Group is approx 54% shareholder of CRHL.
So,GXY does not have that $17.5 Million either.

Andrew:
"It's 26 million- not 17.5...
It's a moving target, as options are being exercised constantly."

and refer to the comment above, that "We have the money no matter what."

thelynxx:
GXY are hoping that both,the $130 Million Loan and CRHL's $17.5 Million will complete in April.

Andrew:
"We've advised the market of that, but it's just taken a bit longer than expected."

thelynxx:
If you think the markets are jittery about GXY's future prospects,then these major finance issues are probably the main reason.

ST:
There are many reasons that might explain the sp movements, so thelynxx's guess here is just that.'

thelynxx:
Within 30 days we should know of the outcome,and hopefully,it will be good news.
These finance issues were supposed to be resolved many months ago.
Good Luck

Andrew:
"Everything is on track. GXY has an experienced board. Creat is taking a risk as well, but it's worth noting that the modelling at hand reports that Creat will get its full investment paid back within 2.1 years.

I will post more under a new topic. Hope that goes some distance to cast some light on things.
ST